What does it mean to have your taxes audited?
While there are several different types of audits...as well as
several different types of taxes..generally:
For an individual, it means the information you submitted on/with your Form 1040 (your tax return) will be checked for completeness and accuracy.
Basically, the questions will be asked and files checked to confirm the information concerning income you reported is all the income you actually should have reported...you didn't omit any employment, income from investment sales, proper addition, etc.
The same for deductible expenses...where you can expect to prove those you may have claimed....like providing receipts for charitable deductions, medical expenses, etc.
Finally, any filing information, like claiming dependents may be questioned and you would have to show why the ones you claimed qualify, substantiate estimated payments or credits your claiming, that type of thing.
An audit may involve all, or any part, or just a specific item of the above. The IRS is the one asking the questions...and yes, they have the right to question any and every item that became or should have become part of your return.
There are strict guidelines that are (or should be) followed by the IRS examiner, and you have the right to dispute the auditors findings.
Bank statements should be okay to use in place of receipts when filing taxes. If you are claiming gas on your taxes, you bank statement will state the name of the gas station, if it is prepaid, and the amount that is purchased. The receipts would be better to have, in case you are audited. So try to keep your receipts next year.
You can (theoretically at least) be audited forever. However, if the results of the audit show that you owe more taxes, there are limits on how far back the IRS can collect the taxes. Generally, taxes cannot be collected three years after you file a return. If you understated your income by 25% or more, then the limit is six years. If there is willful tax fraud involved, there is no limit. If no return…
A draft audited accounts: When the external auditors of a company have finished the audt of the company, a draft accounts will usually be prepared. It is called a draft because it is still subject to "alteration" as it has not been finalised. An external auditor will have to sign a fully audited accounts but will not append such signature unless the accounts is finalised in all aspects. So, we may say a draft audited…
Many services allow you to file your taxes for free, including the IRS itself. For most people, this is a simple process, with clear instructions about what numbers go on which lines, and where to find those numbers so that you're sure to get it right (and avoid getting audited!). However, most people who have complicated taxes (involving large assets, income from multiple states, many itemized deductions, etc) can still benefit from a paid service…
You will get audited by the IRS and should they deem it necessary, the Repo man will come and begin taking your possessions to pay off your tax debts. If you can afford the taxes and have somehow gotten around paying them or neglected to do so, you may be fined or penalized with jail time, depending on the severity.